When your name is J-Lo or Jay-Z, people pay attention. But star power isn't enough to ensure a thriving business, as plenty of wannabe celebrity entrepreneurs--from the worlds of food to fashion--have learned the hard way.
When it comes to making payroll and appeasing investors, famous people flop like the rest of us. "Celebrities are coming in with a leg up, but it doesn't make the back end any easier," says Allen Adamson, managing director of Landor, a Manhattan-based brand-consulting firm.
On the fashion scrap heap is Lauren Conrad, star of MTV's Laguna Beach: The Real Orange County and later, The Hills. Her eponymous collection--launched in 2007 with financial backing from MTV and Tangerine Promotions--included flirty, casual dresses, many priced north of $100. The masses yawned. Earlier this year, Conrad bagged plans for a spring/summer line, citing the current "economic climate."
Credit: Forbes
